The Nasdaq is 7.8% below its Oct. 6 record. Intel lost 28.6% and Dell 10.8%.
NEW YORK – US stocks tumbled on Friday, with the Nasdaq suffering its largest one-day percentage drop since June 5, after disappointing results from Intel and Amazon amplified worries about the huge sums technology companies are spending on artificial intelligence, Reuters reported.
All three major indexes fell. The Nasdaq Composite lost 747.73 points, or 2.86%, to 25,437.00, leaving it 7.8% below its all-time closing high on Oct. 6. The S&P 500 fell 140.32 points, or 1.82%, to 7,580.07, and the Dow Jones Industrial Average lost 572.25 points, or 1.09%, to 51,770.31. Declining stocks outnumbered advancers on the Nasdaq by about three to one. All three indexes closed lower for the week. The S&P 500 and the Nasdaq also logged monthly losses, while the Dow ended October with a gain.
The sell-off was sparked by results from Intel and Amazon released late on Thursday. Intel shares plunged 28.6% after it issued weaker fourth-quarter guidance, citing weakness in the PC market and manufacturing bottlenecks, CNN reported. Reuters said the forecast overshadowed an earnings beat. Amazon shares fell as much as 7% before trading, after a holiday forecast that missed Wall Street targets and an AI spending plan that investors found aggressive, but pared losses during the session to close down 1.4%. Dell fell 10.8% and Nvidia lost 4.2%.
The drop followed a rout in Alphabet on Thursday, when shares of the Google parent fell more than 12% and about $500 billion of market value disappeared on worries about a slowdown in search advertising and rising AI spending. CNN called Friday the final trading day of a bruising month for AI stocks, as investors scrutinize the cost of the AI boom and demand evidence it will pay off.
Markets reopen Monday
his report draws on information from Reuters and CNN.
